I read in Economic Times that SEBI wants to reduce STT in equities and increase the same for futures. What effect can this, if implemented, will have on nifty futures trading?

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Lower transaction costs would definitely mean higher liquidity or volume. If the liquidity is more, your impact cost reduces and typically the volatility in price to news reduces. Good news, hopefully they abolish it completely. :slight_smile:


You mean higher volumes in equity trading, which means volumes of nifty futures will go down and volatility in nifty futures will increase.

I believe the effect on nifty futures would be very less, since it is one of the most highly traded instruments in the world. Its bitter to have higher charges, but that wont stop us from trading nifty.
But impact in Equity would be good and for better.